PM Annadata Aay Sanrakshan Abhiyan: Rs 35,000 cr package for farmers to avoid distress sale | Biz News

PM Annadata Aay Sanrakshan Abhiyan: The amount of Rs 35,000 will be the total expenditure on this programme during the pendency of the 15th Finance Commission Cycle till 2025-26.

Farmers have to frequently resort to distress sales during peak harvesting seasons and this programme might address this long-standing problem of Indian agriculture. (Picture Credit: depositphotos)

Ensuring remunerative prices to farmers is one of the key objectives of any government in India and, on October 16, the Centre has given its nod to Rs Rs 35,000 crore for PM Annadata Aay Sanrakshan Abhiyan, popularly known as PM-AASHA. Union Minister Ashwini Vaishnaw told the media that the other target of the measure adopted at a meeting of the Union cabinet was to stabilise market price of agri commodities for the people.

Enabling the farmers to avoid distress sale during the harvesting season was the key target of the cabinet meeting chaired by PM Narendra Modi. Pulses, oilseeds and other essential agri-horticulture commodities were at the focus of the step announced on Wednesday.

PM-AASHA benefits

According to a statement the integrated PM-AASHA will have 4 different components – Price Support scheme (PSS), Price Stabilisation Fund (PSF), Price Deficit Payment Scheme (POPS) and Market Intervention Scheme (MIS).

The Price Stabilisation Fund component will help shield consumers from volatility in prices of agri-horticultural commodities. This will be done by keeping a strategic stock of onion and pulses for timely intervention by the government. Another benefit will be to discourage speculation and stabilise supplies to consumers.

The significance of the Market Intervention Scheme (MIS) lies in the fact that it could pave the way for remunerative prices to farmers who grow perishable horticulture crops. The Centre has arranged for a new option of making differential payment directly into the farmers’ accounts.

To avoid price volatility

Another step is directed at tomato, onion and potato, essential vegetables that regularly come under the grip of extremely volatile prices. The administration has decided that it will defray the cost of storage and carriage for these crops for NAFED (National Agricultural Cooperative Marketing Federation of India ) and NCCF (National Cooperative Consumers’ Federation of India) operations. The objective of this step is to reduce the gap in prices between the producing and consuming states. In 2023 and 2024, there has been more than one price shock in these essential vegetables.

Avijit Ghosal

Avijit Ghosal has been writing on topics of business, industry and investment for the past three decades. He also writes on the broad economy, infrastructure and issues in banking. He has worked for economic dailies such as the Business Standard, The Economic Times, business magazines such as Business Today, English broadsheet the Hindustan Times and Bengali daily Anandabazar Patrika before joining TV9 Network.

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